Annual Report and Financial Statements 2017 working towards a cleaner energy future We all have a say in what our energy future will look like and we have a responsibility to act Annual Report 2017 Our Impact 01 Our Impact Chairperson’s Statement 02 Chief Executive’s Review 04 Significant Achievements for 2017 06 New Roles and Responsibilities SEAI in 2017 09 SEAI Making a Difference for all Energy Users 12 Snapshot of 2017 24 Governance Corporate Governance 28 Energy Efficiency Report 31 Finance Governance Statement and Board Members’ Report 34 Report of the Comptroller and Auditor General 42 Statement on Internal Controls 45 Statement of Income and Expenditure and Retained Revenue Reserves 47 Statement of Comprehensive Income 48 Statement of Financial Position 49 Statement of Cash Flows 50 Notes to the Financial Statements 51 SEAI 02 Sustainable Energy Authority of Ireland Chairperson’s Statement A year after the decision by the United States to withdraw from the commitments set out in the Paris Agreement, there are still grounds for hope. The majority of world leaders continue their commitment to the achievement of global climate change objectives. Many nations, and indeed global corporations, have put strategic plans and actions in place to continue progress on this vital world issue. Nonetheless, converting those hopes into grounded, practical solutions to reduce carbon emissions remains a world-wide challenge. On the domestic front, we are still playing catch-up on meeting effective and equitable decarbonised energy future. Through our our international obligations on climate change. However, a activities, we aim to empower energy consumers to play a more number of initiatives introduced by Government and the Minister active role in our low carbon transition. The interaction between for Communications, Climate Action and Environment, firmly infrastructure, technology and society will become ever more support Ireland's commitment to the Paris accord. important as we enter the next phase of decarbonisation. In this regard, SEAI will continue to provide cutting-edge, evidence The Government White Paper on Energy Policy in Ireland based analysis and will support Government through our “Ireland’s Transition to a Low Carbon Energy Future” continues to modelling, statistical analysis and behavioral economics underpin the policy development process and endeavours to work streams. put the citizen as well as consumer at the heart of our national ambitions. The Government’s National Development Plan (NDP) – Project Ireland 2040 is a significant step funding available for climate The National Mitigation Plan (NMP), published in 2017, is a further action, including the direction of almost €22 billion to addressing step to setting Ireland on a pathway to achieve the level of the transition to a low-carbon and climate-resilient society. The decarbonisation required. The whole-of-Government approach capital investment priorities contained in the NDP will be an and the measures set out, provide the basis for transitioning integral part of Ireland’s delivery of the climate–action objectives. Ireland to a low carbon, climate resilient and environmentally They are truly ambitious including measures such as upgrading sustainable economy by 2050. 45,000 homes per annum from 2021, the roll out of the Support Scheme for Renewable Heat, the transition to low emissions SEAI will play a key role in delivering on the ambitious targets set transport including electric buses for the urban bus fleet and a out in the White Paper and the NMP. In July 2017, SEAI launched target of just under half of our vehicle fleet to be fully electric. its own Statement of Strategy for the period 2017-2021. This SEAI endorses the compilation of a detailed and coherent strategy has been framed in the context of the overall vision for roadmap to set out the actions to achieve the overall objectives Ireland’s energy to be sustainable, secure affordable and clean. set out in the NDP and looks forward to playing an important Our strategy acknowledges that all parts of society, including part in its delivery. business and Government, must be involved in the sustainable energy transition. It is also predicated on the guiding principle SEAI has experienced significant growth in budgets and that sustainable energy is about improving people’s lives, resources in 2017 reflecting the strategic relevance of the bringing comfort and convenience, addressing environmental Authority in delivering on the national objectives. With the challenges, as well as creating and protecting jobs and support of Minister Denis Naughten and the officials within enhancing Ireland’s competitiveness. the Department of Communications Climate Action and Environment, this growth in budgets and resources is likely SEAI is a catalyst for transformational change. We deliver this as to continue with the implementation of the NDP. We will an Authority by providing evidence, analysis and interventions continue to focus the Authority to deliver value for money for which bring citizens, communities and businesses to a cost this investment; to implement expanding government policy Annual Report 2017 Our Impact 03 objectives; and to achieve the ambitious vision set out in our Statement of Strategy 2017-2021. I would like to thank my colleagues on the Board of the Authority for their support during 2017 and extend my sincere thanks to our CEO Jim Gannon for his leadership of the organisation in a rapidly changing environment. I want to fully acknowledge the endeavours and commitment of his highly focussed executive team and all the staff in SEAI for their achievements last year. The SEAI Board will continue to concentrate its efforts on working with all of our team to build on the success of recent years, ensuring that our increased resources are used strategically and deliver value for money, as we move towards a more rapid decarbonisation of our energy system. Finally, I want to thank the Minister and Department officials for their continued support and encouragement for the Authority as we work together towards our energy and climate change goals. We will continue to play our part as an authoritative and independent voice in support of those goals. Julie O’Neill Chairperson Sustainable Energy Authority of Ireland “Our strategy is predicated on the guiding principle that sustainable energy is about improving people’s lives, bringing comfort and convenience, addressing environmental challenges, as well as creating and protecting jobs and enhancing Ireland’s competitiveness” SEAI 04 Sustainable Energy Authority of Ireland Chief Executive’s Review Increased energy efficiency is the most cost effective way to reduce carbon emissions and increase our competitiveness; it also reduces our reliance on imported fossil fuels and the inherent economic exposure that this brings. As Ireland’s national energy authority we are working tirelessly with Government, the public, businesses and communities to achieve a cleaner energy future. Each year, SEAI invests a significant proportion of the budget provided to us by the Department of Communications, Climate Action and Environment (DCCAE) into the Irish economy. This is achieved through a range of grant and other programmes, to deliver increased energy efficiency and to decarbonise our economy. These actions stimulate vital economic growth and employment in our economy. Last year programmes administered by SEAI invested €70 million Exchequer funds in building energy upgrades, supporting more than 2,000 jobs. An important indirect benefit of this is the significant growth of our energy communities’ network as drivers and leaders in Ireland’s energy transition. Through this network we continued to engage, inform and provide direct grant support to over 130 communities to enable them to harness the benefits of increased energy efficiency. Along with our capital programmes, SEAI has a mandate to provide policy analysis, forecasting and modelling support to the DCCAE. As Ireland approaches 2020, and begins planning our pathway to 2030, it is essential that we continue to strengthen this role in response to changing European Policy and the climate challenges we face. This mandate is central to what we do. It draws on the unparalleled access we have to energy related data “Last year programmes and forecasting, experience of catalysing change with citizens administered by SEAI and industry and the sometimes challenging area of real-world policy implementation. In this statutory role, we continue to work invested €70 million hand in hand with DCCAE and other government departments to support their policy and decision-making processes. As we Exchequer funds in building move forward, we will continue to interact with the range of energy upgrades, supporting public, private sector and academic institutions that generate a variety of changing perspectives, models and scenarios. more than 2,000 jobs” During 2017, SEAI was central to both research and innovation Annual Report 2017 Our Impact 05 “We aim to deliver the policy and incentive platforms that will allow us to meet and exceed the EU 2030 targets which are likely to become clearer during 2018” in the energy sector in Ireland. Internationally, we continued in incentive platforms that will allow us to meet and exceed the EU our role as national delegate to the Horizon 2020 programme, 2030 targets which are likely to become clearer during 2018. helping to identify new areas of priority for both Ireland and Europe. Alongside this, we have continued to participate in, and Finally, it is important to recognise within this report the in many cases lead, several International Energy Agency, UN and dedication and commitment of our staff and the guidance of EU fora around best practice in the transition to a cleaner energy our Board, who have experienced unprecedented change over future. Domestically, we funded 36 research and development the past two years as we have increased our activity to match projects across a range of sustainable energy sectors. We funded Ireland’s growing ambition.